Average Crypto Trader Losses Reached $500 Million Per Day in 2025

RBK-cryptoОпубліковано о 2025-12-25Востаннє оновлено о 2025-12-25

Анотація

According to a Coinglass report, the total volume of forced liquidations of margin-based trading positions on crypto exchanges neared $150 billion in 2025. The estimated average daily liquidation volume throughout the year ranged from $400 million to $500 million. A record-breaking single-day liquidation event occurred on October 11, accounting for nearly 15% of the annual total with nearly $20 billion in futures positions liquidated. This was triggered by US President Donald Trump's announcement of new 100% tariffs on Chinese imports and export controls on critical software, which sparked fears of a new trade war and caused a sharp shift towards risk-off sentiment. Bitcoin and Ethereum fell by 10-15% at their peak, while many altcoins crashed by 80% or more. The crash exposed key market vulnerabilities, including reliance on opaque liquidation mechanisms, fragile infrastructure under peak load, and a lack of effective circuit breakers common on traditional exchanges. Unlike the Terra (LUNA) collapse in 2022, this event did not lead to a cascade of institutional investor defaults, as the risks were concentrated in specific strategies and assets rather than being systemic.

In 2025, the total volume of forced liquidations of margin-based trading positions on cryptocurrency exchanges approached $150 billion, according to a Coinglass report. The estimated average daily liquidation rate throughout the year ranged from $400 million to $500 million.

This refers to the nominal value of positions including leverage (a $100 position with 10x leverage counts as $1000 in the total loss amount), but even with this adjustment, the scale of the losses remains impressive.

Nearly 15% of the annual liquidation volume occurred in a single day—on the night of October 11th, when the crypto market experienced the largest cascade of futures position liquidations in history, with a total volume of nearly $20 billion. This set an absolute record for the volume of forcibly closed trading positions on cryptocurrency exchanges.

The event occurred against the backdrop of U.S. President Donald Trump announcing new 100% tariffs on imports from China, as well as export controls on critical software. This sharply increased expectations of a new trade war, as Coinglass writes, which forced markets into a "risk-off" mode, meaning a retreat from high-risk assets, including Bitcoin and other cryptocurrencies.

Experts note that the scale of the consequences was determined not only by external factors but also by the structure of the leverage used and the functioning of liquidation mechanisms. During exchange overload, Auto-Deleveraging (ADL) mechanisms were triggered, and trades were executed at unfavorable prices, causing losses even for profitable traders.

Bitcoin and Ethereum lost 10–15% at their peak, while many altcoins collapsed by 80% or more.

The Coinglass report stated that the crash of that day revealed key market vulnerabilities: reliance on opaque liquidation mechanisms, the fragility of infrastructure under peak loads, and the lack of effective circuit breakers that exist on traditional exchanges.

Unlike the crash of the Terra (LUNA) project in 2022, this collapse did not lead to a series of defaults by institutional investors. The risks were not systemic and were concentrated in specific strategies and assets, noted Coinglass.

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Пов'язані питання

QWhat was the average daily liquidation amount for crypto traders in 2025 according to the Coinglass report?

AThe average daily liquidation amount ranged from $400 million to $500 million in 2025.

QWhat event on October 11 triggered the largest cascade of futures liquidations in crypto market history?

AUS President Donald Trump announced new 100% tariffs on imports from China and export controls on critical software, which sharply increased expectations of a new trade war.

QWhat were the maximum losses for Bitcoin and Ethereum during the market crash described in the article?

ABitcoin and Ethereum lost 10-15% at their maximum, while many altcoins collapsed by 80% or more.

QWhat key market vulnerabilities were exposed by the crash according to the Coinglass report?

AThe key vulnerabilities were dependence on opaque liquidation mechanisms, infrastructure fragility during peak loads, and the lack of effective circuit breakers that exist on traditional exchanges.

QHow did this market crash differ from the Terra (LUNA) collapse in 2022 in terms of institutional impact?

AUnlike the Terra collapse, this crash did not lead to a series of defaults by institutional investors. The risks were not systemic and were concentrated in specific strategies and assets.

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